ISLAMABAD, Jun 11 (APP):The performance of auto industry remained sluggish during the current financial year, except buses where it witnessed growth of 17 percent during July-March 2019-20.
According the Economic Survey 2019-20 launched here on Thursday, during the period from July-March 2019-20, the farm tractor sector massively declined by 28.7 percent as the production recorded at 37,457 units against 52,551 units produced, in the corresponding period of the last year. This decline was due to massive slow down in the agriculture growth, water shortages and other issues like increase in the prices of agricultural inputs and halting of development projects added woes of the farmers, thus badly impacted the bookings of farm tractors.
The passenger car sector was somewhat resistant to the general receding trend in the industry with meager growth of 2.4 percent. Its growth was impacted by repeated policy changes with regard to non-filers like imposition ban on purchase, heavy taxation on registration by non-filers and the recent 10 percent levy of federal excise duty.
The imposition of 10 percent FED on exceeding 1700cc engine capacity badly impacted locally produced cars, jeeps and SUBS. The LCV/pick-ups being price sensitive also lost ground, 14 percent down in production.
The motorbikes and three wheelers sector also failed to show normal growth, it rather dropped off production by 5.8 percent during July-March 2019. These vehicles cater to lower income group, hence, are extremely price sensitive. Still, this sector offers most preferred and economical means of transport and best alternative in the absence of public transport in the cities and thus holds a dependable and continued potential for growth in the coming years.